USD/IDR: Indonesian Rupiah rises to 7-week highs, President Widodo gets second term as expected

Exit polls show the incumbent Indonesian President Joko Widodo is on course for the second term.

A bearish lower highs pattern favors further slide in the USD/IDR pair.

USD/IDR is currently trading at 14,014, representing a 0.39 percent drop on the day, having printed a low of 14,000 earlier today, its lowest level since February 28.

The Indonesian Rupiah is likely cheering the exit polls, which show the incumbent Joko Widodo in on course for the second term. “Quick counts” conducted by a variety of credible polling agencies put Jokowi on around 55% of the vote, with Prabowo winning around 44%, according to CNN.

Widodo is widely seen as a progressive leader, given the Indonesian economy logged a solid 5 percent growth rate during his first term in office.

More importantly, his rival, the former army general Prabowo Subianto, lacks experience in governing. His loss, therefore, has eliminated uncertainty, pushing the IDR higher.

Looking forward, the USD/IDR may drop to key support at 13970 (Feb. 26 low). A close lower would bolster the already bearish technical setup and allow a stronger sell-off to 13,895 (February low). The outlook would turn bullish again if and when the spot violated the bearish lower highs pattern with a move above 14,152.

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